Which characteristic of a monopolistically competitive firm causes it to have zero profits in the long run?
A. There are no barriers to entry.
B. The firm has a slight control of its price.
C. The firm sells a differentiated product.
D. All of these causes the monopolistically competitive firm to have zero profits in the long run.
Answer: A
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A monopolistically competitive firm is producing at an output level in the short run where average total cost is $4.50, price is $4, marginal revenue is $2.50, and marginal cost is $2.50. This firm is operating
A. with a loss. B. at the break-even point. C. with positive profits. D. at a nonoptimal level of output.
Which term below fits closest to money functioning as a unit of accounting?
A) medium of exchange B) adverse selection C) standard of value D) liquidity
The demand curve in monopolistic competition slopes downward because of:
a. strong barriers to entry. b. product differentiation. c. the small number of firms. d. government regulation. e. the similarities of the businesses.
A corporation exists as a separate legal entity that can be sued
Indicate whether the statement is true or false